Financial Performance Evaluation of Select Automobile Companies

Abstract

India, with a growth rate of 6.6 per cent in the year 2022, is among the fastest growing economies in Asia. Manufacturing sector and agricultural sectors occupies second and third place in terms of contribution to GDP respectively. The automobile industry plays a vital role in Indian economy in India in terms of employment generation, production and sales. Automobile sector a key driver of macroeconomic growth. Success of any organisation depends on mainly on management of its finance efficiently; therefore financial performance evaluation is plays pivotal role. The aim of the paper is to evaluate the financial performance of select Automobile Companies using ratios. The study is desk research and it is based on the secondary data collected annual reports for five years 2016-17 to 2020-21. The population of the study comprises of top 10 automobile companies listed in BSE Ltd. as on 31-12-2021. The researcher has chosen top three companies on the basis of turnover. The sample companies are Tata Motors, Maruti Suzuki, and Hyundai Motors. The scope of the study is limited to the select companies which are from four wheel passengers’ vehicles only. The data collected for study were analysed using ratio analysis and EVA analysis. It is found that on an overall the financial performance of select sample automobile companies were in a slow pace, but Maruti Suzuki and Hyundai Motors were stable and better in their financial performance.